GRAINS-Wheat firms, snaps longest losing streak in 20 years

Reuters Staff

4 Min Read

* Wheat firms as USDA confirms further crop damage
* Gains capped by global supply forecasts
* Corn down as conditions pegged above expectations
By Colin Packham
SYDNEY, June 3 (Reuters) - U.S. wheat futures rose for the
first time in 10 sessions on Tuesday, snapping the longest
losing streak in 20 years, after the U.S. Department of
Agriculture (USDA) said the condition of the crop failed to
improve despite recent heavy rains.
Corn fell for the fourth straight session after the USDA
pegged crop conditions above market expectations following near
perfect conditions across the Midwest, while soybeans fell after
firming nearly 0.5 percent in the previous session.
Chicago Board of Trade front-month wheat futures rose
0.4 percent to $6.23-1/2 a bushel, having closed down 1 percent
in the previous session.
Wheat drew support after the USDA said good-to-excellent
ratings for the winter wheat crop stabilized at 30 percent, 2
percentage points below market forecasts, despite recent heavy
rains across some key growing regions.
"The USDA figures will have provided some support, with the
condition of wheat in some regions at historical lows," said
Graydon Chong, senior grains analyst, Rabobank.
Wheat had slumped about 8 percent in nine straight sessions
of losses, the longest stretch of consecutive declines since
March 1994, as favorable weather boosted the outlook for
recently planted spring wheat and provided much needed moisture
to the drought-hit winter crop.
Spring wheat planting was pegged at 88 percent, up 14
percentage points from a week ago and in line with the five-year
average.
Favorable weather in May has brightened prospects for the
2014 grain harvest in Russia and Ukraine, easing risks related
to the lack of financing available for sowing, analysts and
traders said on Monday.
July corn fell 0.3 percent to $4.64 a bushel. Traders
said corn was under pressure from the USDA's first conditions
report of the season for the grain that showed 76 percent of the
corn crop was rated good to excellent as of June 1.
Analysts had been expecting 70 percent good to excellent,
according to the average of estimates in a Reuters poll.
July soybeans fell 0.2 percent to $14.97-1/4 a bushel.
Soybean planting advanced to 78 percent complete, 3 percentage
points better than analysts' forecasts, from 59 percent a week
ago. The five-year average for early June is 70 percent.
Grains prices at 0314 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 623.50 2.75 +0.44% -0.60% 685.73 17
CBOT corn 464.00 -1.50 -0.32% -0.38% 493.61 24
CBOT soy 1497.25 -3.25 -0.22% +0.27% 1484.30 51
CBOT rice $14.85 -$0.02 -0.10% -0.90% $15.32 19
WTI crude $102.50 $0.03 +0.03% -0.20% $101.69 46
Currencies
Euro/dlr $1.360 $0.001 +0.07% -0.20%
USD/AUD 0.925 0.000 +0.01% -0.67%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Muralikumar Anantharaman)